About monetary policy
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「Bank of Japan has another job. It is Monetary policy.Try to stability is job to Bank of Japan.」
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「It is doing a lot of kind job!」
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「Yes. Do you know inflation and deflation?」
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「what is it?」
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「Yes! oh which...」
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「We call inflation which keep increasing price of goods and service.」
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「I know it!」
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「For example, in Germany after World WarⅠ,goverment prented to return the debt so goods's price keep increasing. A poteto is million yen.」
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「Really!?」
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「Outcome,bills is like papers.」
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「Money is like papers!?」
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「Yes, and children play bills like block.」
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「Value of money decreased...」
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「Yes...The contrary, deflation is price keep decreasing.It's bad too.」
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「Price of things decrease so is it good?」
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「Kaneta,please you think well. Proceeds decrease clerk side.」
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「So...Do clerks's pay decrease?」
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「Yes. Not all, the unemployed mar increase. Is it bad?」
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「Yes... Inflation and deflation are scary.」
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「Yes. So,it not both of them, just circumstances calls Price stability.」
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「How does Price stability do?」
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「Bank adjusted money which circulate, and interest of Short-term money market manipulations.」
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「What is interest?」
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「When we lend and borrow money, it puy money as thanks.」
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「So, will it do?」
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「It will become inflation so Bank increase interest. So everyone deposit to Bank, family finances keep down the cost. So economy settles down.」
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「I see.」
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「How does interest decrease?」
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「Decreasing interest is economy settles down. Because everyone use money more, companies borrow more.」
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「Bank isn't only depositing money...」
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「It is important to supporte the society!」
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